Can someone help me with this accounting problem, please? It's Cost of Goods Sold and I am confused. Thanks

Question

Merchandise on hand July 1 was $4050; purchases during July were $21,150; transportation out was $525; transportation-in was $1,125; purchase returns were $450; inventory, July 31, was found to be $4650. What was the Cost of Goods sold for the month of July?

Answer 1

BOH.......+4,050.00..Add
FRT........+1,125.00..Add
REC.....+21,150.00..Add
Ret..............-450.00...Subtract
TOTAL=

EOH..........-4,650.00..Subtract from Total
COGS....=....................Cost of Goods Sold

Frt out should have been included in Sales, not Cost of goods.